‘Great news’: PM Modi hails India-US trade deal framework, thanks Trump for…

PM Modi welcomed the India-US interim trade deal, describing it as a significant move to strengthen economic relations, support domestic manufacturing, and generate jobs.

India-US Interim Trade Agreement: Washington and New Delhi on Saturday released a joint statement announcing the India-US trade agreement, highlighting the terms of the deal. The agreement is a result of crucial negotiations between Prime Minister Narendra Modi and US President Donald Trump. Through this agreement, both the leaders tried to eliminate the financial hurdles that restricted bilateral trade. PM Modi on Saturday welcomed the India-US interim trade deal and termed it a significant step towards strengthening economic ties between the two countries. He stated that this will boost domestic manufacturing and create jobs.

India-US Interim Trade Agreement: What Did PM Modi Say?

The Prime Minister on Saturday took to X and wrote, “Great news for India and USA! We have agreed on a framework for an Interim Trade Agreement between our two great nations. I thank President Trump for his personal commitment to robust ties between our countries. This framework reflects the growing depth, trust and dynamism of our partnership. It strengthens ‘Make in India’ by opening new opportunities for India’s hardworking farmers, entrepreneurs, MSMEs, StartUp innovators, fishermen and more. It will generate large-scale employment for women and youngsters. India and the United States share a commitment to promoting innovation and this framework will further deepen investment and technology partnerships between us. This framework will also strengthen resilient and trusted supply chains and contribute to global growth. As India moves forward towards building a Viksit Bharat, we remain committed to building global partner.”

Great news for India and USA!

We have agreed on a framework for an Interim Trade Agreement between our two great nations. I thank President Trump for his personal commitment to robust ties between our countries.

This framework reflects the growing depth, trust and dynamism of… https://t.co/zs1ZLzamhd

— Narendra Modi (@narendramodi) February 7, 2026

India-US Released Joint Statement On Interim Trade Agreement

The United States and India on Friday announced a framework for an interim trade deal that is reciprocal and mutually beneficial trade, showing fresh progress toward a wider bilateral trade agreement following months of crucial talks and recent tariff tensions. Under the new agreement, the Trump administration will reduce tariffs on India to 18 percent. The step marks another major step toward advancing the broader Bilateral Trade Agreement (BTA) negotiations launched by President Donald Trump and Prime Minister Narendra Modi in February last year, a joint statement stated.

Also Read: US, India unveil interim trade framework: What benefits will India get?

India To Cut Tariffs On US Industrial, Food And Agricultural Goods

Under the new framework New Delhi will cut or reduce tariffs on all American industrial goods and agricultural products. This includes dried distillers’ grains, tree nuts, fresh/processed fruits, red sorghum for animal feed, soybean oil, wine and spirits, and other products.

US To Impose 18% Reciprocal Tariff On Indian Goods

According to the Joint Statement, Washington, under the relevant executive orders, will apply a reciprocal tariff of 18 percent on Indian goods. This will cover sectors like – artisanal products, textiles and apparel, plastics and rubber, organic chemicals, leather and footwear home decor, and machinery.

Benefits That Will India Get From Interim Trade Framework

• Now, reciprocal tariffs will be reduced to 18 percent, improving market access for Indian exporters.
• Tariff cut on generic pharmaceuticals, gems & diamonds and aircraft parts.
• Indian exporters will get expanded entry into the US market. This will benefit MSMEs, farmers, fishermen, women.
• To boost to key export sectors like – leather and footwear, plastic and rubber products, organic chemicals, home decor and artisanal goods and select machinery.
• New Delhi will get exemptions under US Section 232 for aircraft parts.
• Preferential access for some auto components into America.
• Revised and improved terms and tariffs for Indian generic pharmaceuticals.
• No tariff concessions on maize, wheat, rice, soya, poultry, meat, milk, cheese (dairy), ethanol (fuel) and tobacco.

What India Will Offer To US

• India to cut tariffs on all US industrial goods and agricultural products. This includes DDGs, sorghum, nuts, fruits, soybean oil, wine and spirits.
• Sustained preferential market access in key sectors of interest.
• India to buy USD 500 billion worth of US products. This include – energy, aircraft, precious metals, and technology products.
• The US and India will set clear rules of origin, strengthen regulatory coordination, and widen market access as they continue talks on the broader bilateral trade agreement.
• Both countries to provide each other with preferential market access.